TURKISH AUTOMOTIVE INDUSTRY

In a world where we live through an intense competition, initiatives directed towards the development of Turkey’s ongoing production and export capacity provide an important support for our exporters who are striving in the international competition arena. Today, Turkish Automotive Industry is one of the main driving forces in the Turkish manufacturing industry. The Turkish Automotive Industry has achieved rapid development and become the largest sector in Turkey and accounts for 15 % of total Turkish exports in 2015.

The automotive main and supplier industries in Turkey, world’s 16th largest economy, are major drivers of the economy. The largest commercial vehicle manufacturer of Europe, Turkish automotive industry consists of a main industry, which produces motor vehicles, and a supplier industry, which manufactures components, parts, modules and systems fitting these vehicles.

Turkish automotive companies have been in close contact with the foreign companies. Major international companies; such as Renault, Fiat, Ford, Toyota, Honda, Hyundai, Mercedes-Benz, MAN, Robert Bosch, Valeo, Delphi, ZF, Denso, Faurecia .… from all over the world have set up joint ventures with the domestic Turkish companies, and are enlarging their investments day by day with the tendency towards global sourcing philosophy by which international automotive main industry companies are reaching new markets by using Turkey as a springboard.

Customs Union with the EU and the EU candidacy of Turkey led to the adoption of the EU product standards and environmental standards in the Turkish Automotive Industry. With respect to these principles, most of the Turkish companies have already acquired the certificates of quality in direction with the EU directives. As a result, the automotive industry attained a very advanced stage in technology and international certifications (ISO 9002, QS 9000, ISO 14000, etc.), so as to turn its production towards OEM companies operating in developed Western Countries. The export of Turkish Automotive Industry to the EU countries covers 76% of the total automotive export in 2015, which is an indicator of the level of technology attained by the Turkish automotive sector. Turkey, produced 1 million 359 thousand vehicles in 2015 and 73 % of this production was exported overall the world.

The automotive industry in Turkey, which has been operating for more than sixty years, has been the export champion for ten years. In 2013, export of the automotive industry increased by 12 % to 21.3 billion USD and production of the industry by 5 % to 1 million 125 thousand units. In 2014, production of the industry has increased by 4 % and reached to 1 million 170 thousand levels. On the other hand export of the industry has increased by 4,5% and reached to 22.3 billion USD. In 2015 automotive export of Turkey decreased by 5% to 21.2 billion USD. However production of the industry has increased by %16 and reached to 1 million 359 thousand units. When considered in terms of product base; export of the passenger cars decreased by 5 % and automotive supplier industry by 9 % in 2015 compared to 2014. Turkish Automotive Industry export to all countries but especially to Germany, United Kingdom, France, Italy, Spain, Belgium, United States , Slovenia, Romania and Israel respectively.

Turkey is also playing an increasingly important role in the supplier industry as an exporter and manufacturer. Turkish Automotive Supplier Industry produces almost all parts and components of the sector. The USD 8,6 billion supplier industry export figure for 2015 makes up 40,5% of the total automotive export and 6,0 % of the total country export. Along with local manufacturers with nearly 40 years of experience in the automotive supplier industry, there are also world brands that have significant investments in Turkey. Our supplier industry companies had a chance to become a “co-designer” of the main industry companies for global production. This allowed them to reach a prominent phase with their long years of experience and know-how